IBEX forecast for the week of April 21, 2014, Technical Analysis » Fx …
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The IBEX initially fell during the week, but found a significant amount of support at the €10,000 level, to turn back around and go much higher. We closed just above the €10,290 level, which of course is a very bullish sign. We believe that a break above the top of the candle for the week is a sign that the market is going to continue going higher. After all, looking at the trend that we have been in for some time, it’s obvious that the IBEX is ready to continue going much higher. Simply put, the trend is very much intact.
The IBEX is a destination that a lot of “hot money” finds itself heading towards when Europe is being invested in. As the European markets go, the IBEX will go, especially as people were looking for more stringent returns. With that, we are very positive of this market in general, and recognize that as long as the markets can remain somewhat stable around the world, the IBEX should continue to grind higher.
The IBEX will first target the €10,700 level, and then above there probably continue to go towards the €15,000 level given enough time. However, there will be pullbacks in time to time as we grind higher, not necessarily shoot straight up. This grind will have plenty of pullbacks that will have people stepping into the marketplace over and over again. With that, there will not only be long-term opportunities, but also short-term opportunities. However, regardless of whether or not you are looking at trading short or long-term, only direction that we are interested in trading is up, and certainly not down.
All things being equal, we feel that this market will offer more and more trading opportunities for longer-term investors more than shorter-term though, simply because this is more of an investment than some type of higher frequency trading. There is no opportunity to sell as far as we can see, at least until you get below the €9300 level. That being the case, we are bullish only.
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IBEX forecast for the week of April 21, 2014, Technical Analysis » Fx …
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